Target Corporation: Marketing Entry Plan & Analysis for Saudi Arabia

This report details Target Corporation's marketing plan for its expansion into Saudi Arabia, outlining the company's mission, vision, and business objectives within the Saudi Arabian context. It includes a comprehensive marketing plan that identifies the target market based on demographic, behavioral, and psychographic characteristics, along with marketing mix strategies focusing on product offerings, pricing, distribution, and promotion. The report also features a SWOT analysis to assess the company's strengths, weaknesses, opportunities, and threats, as well as micro and macro-environmental analyses using Porter's Five Forces and PEST analysis frameworks. Key aspects such as customer relationship management, the consumer decision-making process, market segment evaluation, and the company's value proposition are also discussed. Furthermore, the report outlines the steps involved in the new product development process, providing a holistic view of Target Corporation's strategic approach to establishing and growing its presence in the Saudi Arabian market. Desklib provides students with access to this and other solved assignments.

Running Head: MARKETING 1
Marketing: Target Corporation in
Kingdom of Saudi Arabia

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Table of Contents
Introduction......................................................................................................................................4
Company Description......................................................................................................................4
Mission.........................................................................................................................................4
Vision...........................................................................................................................................5
Business Objective.......................................................................................................................5
Product and Types of Services.....................................................................................................5
Marketing Plan.................................................................................................................................5
Target Market...............................................................................................................................5
Marketing Mix Strategies.............................................................................................................6
SWOT Analysis...............................................................................................................................7
Micro-environmental Analysis........................................................................................................8
Porter’s Five Forces Analysis......................................................................................................8
Macro-environmental Analysis.......................................................................................................9
PEST Analysis.............................................................................................................................9
Key Activities to Make Customers Relationships and Maintain Customer Sales.........................10
Consumer Decision Making Process.............................................................................................10
Marketing Research for Better Decision.......................................................................................11
Evaluation of Market Segments.....................................................................................................11
Value Proposition..........................................................................................................................12
Steps in the Best Development Process for New Products............................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Introduction
Business expansion is one of the major actions of a company to gain more business growth and
success. After establishment in home country, each and every organization plans for business
expansion in new and emerging country markets (Kipley and Jewe, 2015). This report includes
various marketing aspects about the Target Corporation. After developing its business operations
in several developed countries, now Target Corporation is planning to open its discount store in
Saudi Arabia and to establish its marketing function in the country. The major objective of this
report is to establish the vision, mission and business objectives for Target Corporation, Saudi
Arabia. The report includes the marketing plan and SWOT analysis of the company in Saudi
Arabia. In addition to this, macro and micro environmental analysis are conducted by using
different strategic frameworks. Moreover, some significant points regarding Target Corporation
in Saudi Arabia are included such as activities to develop customer relationships, customer
decision making process, evaluation of market segments and its value proposition.
Company Description
Target Corporation is one of the largest discount store retailers in the United States of America.
This organization holds second position in the industry after Wal-Mart. The organization was
established by George Dayton in the year 1902 and it is headquartered in Minneapolis,
Minnesota. Currently, it is operating its business in United States and it has opened total 1834
retail outlets throughout the country (Target Corporation, 2014). The organization has
emphasized on the needs of younger and image-concerned shoppers. Now, it is proposing to
expand its business in Saudi Arabia and it aims to increase its sales with this business expansion.
The mission, vision and objectives of Target Saudi Arabia are given below:
Mission
In Saudi Arabia, the mission statement of Target Corporation is “to provide high quality, on-
trend merchandize at affordable prices in spacious, clean and customer-friendly retail stores.” By
opening the store in Saudi Arabia, Target aims to make it most chosen shopping store for all the
shoppers in the country (Target Corporation, 2018).

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Vision
The vision statement of Target Corporation is to fulfill the commitment to customer i.e. “Expect
More, Pay Less (Target Corporation, 2018). The organization has the guided promises to
community, diversity, great value and environment.
Business Objective
Target Corporation is the second largest retailer of America and it aims to provide everyday
fashionable and essentials, unique merchandize at affordable and discounted prices. In Saudi
Arabia, the company targets to become customer oriented and it will be focused on needs and
demands of customers that in what products or services market to operate (Target Corporation,
2018).
Product and Types of Services
Target Corporation Saudi Arabia will operate its business by offering different product
categories at discounted retail stores. The product categories of organization include household
essentials, beauty products, baby care, food and pet supplies, cleaning and paper products,
grocery and dairy products etc. In addition to retail services, Target Corporation will be offering
other services such as financial services and target sourcing services. Under financial services, it
will offer the credit cards in Saudi Arabia (Target Corporation, 2018).
Marketing Plan
To expand its business operations in Saudi Arabia, Target will create a marketing plan that
includes all target segments in country and marketing strategies (Armstrong, et al, 2015).
Marketing plan for Target Company is stated below:
Target Market
Target Corporation is introducing itself as discounted store in Saudi Arabian retail sector. The
organization is offering its products with higher quality, extraordinary value and a place to shop
while saving their money with discounted prices. In Arab world, Kingdom of Saudi Arabia has
the lowest poverty rate (ADHRB, 2017). It indicates that there are various people in the country
who prefer to purchase the products at discounted prices.

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In Saudi Arabia, Target Corporation will target the customers by looking at different
characteristics i.e. demographic, behavioral and psychographic. In this country, the target
audiences of Target Corporation will be:
 Both males and females
 Median age Group: 25 to 45 years old (Al-Malkawi, Mansumitrchai, and Al-Habib,
2016)
 Middle and lower income people
By targeting the above customer groups, Target Corporation will create and implement effective
marketing strategies, which are given below:
Marketing Mix Strategies
Product
In Saudi Arabia, Target Corporation will offer various products in its discounted stores. Different
product sections at retail stores are stated below:
 Household Items
 Consumer electronics
 Furniture
 Baby Care products
 Fitness products
 School and office supplies
 Personal care products
Other services of the company include financial services, sourcing services and pharmacy
services (Vida, 2015). The company will offer its products with higher quality and it will make
efforts to diversify its product range in Saudi Arabia.
Price
As the organization is targeting the people from lower and middle income level so it will make
an effective strategies to attract them. Considering this, the organization will offer its products
and services on discounted prices in Saudi Arabia (McDonald, and Wilson, 2016). To set its

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pricing strategy, the company will consider the prices of existing retailer in Saudi Arabia. It will
continue its operations with its current pricing policy i.e. discounted pricing and cost effective.
Place
Under this business expansion, Target Corporation will establish a distribution center in major
city of Saudi Arabia. The organization will set an extensive distribution network in the country.
The products of Target will be delivered directly to end customers by opening retail stores and
via its website.
Promotion
By the use of effective promotion strategies, Target Corporation will communicate its brand
message to Saudi Arabian customers. It will give the advertisements on offline and online media.
This organization will give the ads on television and regional newspapers of Saudi Arabia (Al-
Malkawi, Mansumitrchai, and Al-Habib, 2016). It will develop partnership with online websites
such as Amazon.com, Flipkart etc. To retain its customers, it will personally contact to its regular
customers through e-mails and gift cards. Thus, this marketing plan will assist Target
Corporation to attract more customers in Saudi Arabia.
SWOT Analysis
The SWOT analysis of Target Corporation Saudi Arabia is stated below:
Strengths Weaknesses
 Low Cost Model is the biggest strength
of company.
 Target has strong brand image in the
country.
 The company is working on its
commitment i.e. Expect more- Pay less.
 It will offer diversified range of
products and services in Saudi Arabia.
 The company has limited presence in
Saudi Arabia and other international
markets.
 Hiring of workers in Saudi Arabia will
lead to higher costs of training
program.
 The company has accused of various
laws related to hiring practices
(Madhavaram, Hunt, and Bicen, 2017).
Opportunities Threats

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 The organization can open its retail
stores in different cities of Kingdom of
Saudi Arabia.
 It can diversify its product range in its
grocery stores by including sustainable
seafood and organic foods (Jin,
Almousa, and Kim, 2018).
 The company may face competition
from already established retailers.
 It will be new entrant in the Saudi
Arabian retail sector.
Micro-environmental Analysis
Porter’s Five Forces Analysis
Industry Rivalry (Moderate)
Saudi Arabia has a vibrant retail industry and about 63% of the Middle East’s food imports from
Saudi Arabia that puts the nation as a leading player in food production (Hussey and Bia, 2014).
One of the major competitors of Target Corporation Saudi Arabia is Almarai Company. In this
sector, the competition is moderate as other players do not have strong presence in Saudi Arabia.
Bargaining Power of customers (Low)
In Saudi Arabia, the bargaining power of buyers is low because of limited number of
organizations operating in retail sector relative to the high population of Kingdom of Saudi
Arabia. The company is retaining its customers by providing higher quality product on lower
prices.
Bargaining Power of Suppliers (Moderate)
Bargaining power of suppliers is moderate as Arabian Government has a control on the raw
material for food and retail products (Vida, 2015). The suppliers are unable to demand higher
products from organizations.
Threats of New Entrants (Low)

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Threats of new entrants for Target Corporation are low in Saudi Arabia. It is not easy to set up a
supermarket business as it requires huge capital investment. Target has a strong brand image and
it is very difficult for new entrants to match that standard of Target Corporation in Saudi Arabia.
Threats of Substitutes (Moderate)
The threat of substitutes is moderate for Target Corporation Saudi Arabia as people can buy the
retail products from small retail outlets, grocery stores, departmental stores etc. People prefer to
shop at their nearby departmental stores rather than super markets.
Macro-environmental Analysis
PEST Analysis
Political
In Kingdom of Saudi Arabia, government plays an important role in the businesses. The
government has created a business friendly regulation that will be beneficial for the
establishment of Target Corporation in the country. The political situation of the country is the
major strength of the retail industry.
Economic
The economy of Saudi Arabia is attaining a significant growth due to price spikes of oil. It has
grown this country to be among the wealthiest countries in the world. Economic factors of Saudi
Arabia provides favorable environment to Target Corporation. Target Corporation can create
more employment opportunities in the country and it can enhance the employment rate in Saudi
Arabia (Jin, Almousa, and Kim, 2018).
Social
Saudi Arabia has one of the lowest poverty rates in the world. This country is the 10th lowest in
this category. The poverty rate in Saudi Arabia is 12.7% (ADHRB, 2017). Target Corporation is
providing its products to lower and middle income level population so Saudi Arabian market is
very profitable for the Target Corporation because this group is growing in Saudi Arabia.
Technological

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Advancement in technology can assist the retail organization in leading towards the operations
and cost effectiveness (Kipley and Jewe, 2015). In Saudi Arabia, Target Corporation can use
social media sites to approach the customers. It can contact the customer through media sites like
Instagram, Facebook and Twitter. Advanced technology can assist the organization in creating a
customer base.
Key Activities to Make Customers Relationships and Maintain Customer
Sales
In United States, Target Corporation is operating its business by developing better relationships
with the customers successfully. The company understands that customers are the lifeblood of a
business so creating a strong relationship with them is vital to the growth and success of
organization. Under this business expansion, the organization will approach the customers
through social media sites and events. First, it will understand the needs and demands of Saudi
Arabian customers and then offer the services to targeted audiences. In addition to this, it will
make personal contact with its regular customers through e-mails. The staff at retail stores will
be customer-friendly and supportive so that they can shop at Target’s stores easily. Moreover,
one of the best ways to enhance and empower the relationship with customers is to make them
feel cherished. Target Corporation will send a thank-you-note and vouchers to the customers so
that they can stay loyal to the company. In this way, the organization will be able to make better
relationships with customers and improve customer sales in Saudi Arabia (Sharp, 2013).
Furthermore, Target Corporation will make efforts to maintain the customer sales. However, the
making better customer relationships will lead the Target Corporation towards maintaining and
enhancing the sales. The company will take the feedback from customers after their shopping
and it will work on them. Discounted prices of products are the best way to enhance and
maintain the sales of company in Saudi Arabia.
Consumer Decision Making Process
Target Corporation will analyze different processes under consumer decision making process.
The process will start from need recognition which is the most important step under decision
making. Target Corporation will identify the needs and wants to Saudi Arabian people and act
accordingly. It will enable the organization to enjoy the success because they will be able to meet

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the needs of customers. It will attract the customers who are in the search of retail products such
as grocery, baby care, personal care, household items etc. After that, the organization will go
under next step i.e. search for information. After analyzing the needs, the customer will search
for the alternatives of needs for retail products. The store employees will assist the people to
resolve their query related to product selection (Rani, 2014). After considering various
alternatives in retail sector, the customers will evaluate all retailers. In Saudi Arabia, the number
of retailers is less so it is very easy to make decision regarding Target Corporation. Once the
evaluation process is over, the customers make the final purchasing decision regarding the
products. Target Corporation is offering a variety of products so it is very easy for the customers
to make final buying decision from number of products at Target Corporation. After this,
company will take the feedback and response from customers. It will assist the organization in
fulfilling the needs of customers.
Marketing Research for Better Decision
Target Corporation will conduct market research by considering different components like target
audiences, brand awareness, customer acquisition and customer retention. Brand awareness will
assist the Target Corporation in determining the image of organization in the point of view of
Saudi Arabians. It will facilitate the target audiences to create a communication message which
reverberate with them. Under this, the organization will understand the needs of customers and
focus on offering the products on discounted prices. Team of Target Corporation will search for
the people who want retail products on lower prices (Babin and Zikmund, 2015). Opening
discounted stores in Saudi Arabia will assist the Target Corporation to acquire new customers.
Market research will assist the organization in getting customer information and making decision
regarding product offering.
Evaluation of Market Segments
There are various factors which can assist Target Corporation to evaluate the market segment
and choose the best one. First the organization will evaluate the market potential of a segment by
considering the number of customers, their income and their needs towards retail products.
Competitive situation can also assist the organization in analyzing the customer segments. If the
total sales of current suppliers are below the market potential in Saudi Arabia, then Target

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Corporation can attain the sales without carrying the operations away from competing brands. In
this situation, the company will attract the lower income people by lowering the prices. For
selecting the best market segment, the company will analyze the sales from a separate market.
The lower and middle income people are the best target market for Target Corporation KSA
(Sheth, and Sisodia, 2015).
Value Proposition
Considering the target market in Kingdom of Saudi Arabia, the company will create an effective
value proposition. It will assist the organization to meet customers’ requirements. In order to
deliver the best value to customers, Target Corporation KSA will emphasize on its pricing
strategy (Kipley and Jewe, 2015). It will offer everyday fashionable, essentials and differentiated
products at discounted prices for all the customers. In this way, the company will fulfill the needs
of customers and their commitment i.e. “Expect more, Pay less”.
Steps in the Best Development Process for New Products
In KSA, the Target Corporation will make several efforts to manage its products and services.
The organization will focus on keeping the top selling products like detergent, paper towels and
diapers on the stores at all the times. To accomplish this, Target will establish an effective supply
chain which can get the products from distribution centers to the stores quick and cost
effectively. It will try to avoid the situations of excess stock and stock out of products at stores
(Eppinger and Ulrich, 2015). For developing new products, Target Corporation can use the
below-mentioned steps:
 Determination of product innovation goal at Target Corporation, KSA
 Analysis of the customers’ perception towards the innovation of company

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 Review the market segments to get better ideas for product development (Lavenda, 2013)
 Testing the product ideas with the targeted customers
 Implement the ideas in practice towards product development
In this way, the above steps can assist Target KSA to develop and provide new product in the
Saudi Arabian retail market (Gopalakrishnan, et al, 2015).
Conclusion
Thus, it is hereby concluded that Target Corporation is one of the biggest retailer in United
States. Now, the organization is expanding its business in Saudi Arabia. By this expansion, the
company may have various benefits and it can increase its customer base. From the above
analysis, it can be founded that external environment in KSA will be favorable for Target
Corporation. The above given marketing plan and strategies will enable the Target Corporation
in establishing its business in Kingdom of Saudi Arabia. Thus, it can be concluded that Target
Corporation should expand its business in other emerging markets.